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tv   Closing Bell  CNBC  October 11, 2013 3:00pm-4:01pm EDT

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whatever you want to call it, tune in. >> date night with us. >> eat at saks restaurant, watch us, goes together with the high rollers we are. >> "closing bell" starts now. see you later tonight, 6 p.m. eastern. >> hi, everybody, happy friday. welcome to the "closing bell." maria bartiromo at the stock exchange. focused on washington and big move in stocks once again. >> since wednesday's low we're up 6 %, 7%. i mean, it's an incredible gain here. market adding to the massive gains from yesterday's 30 0-point move. at this point, with -- everyo everybody's talking, deal proposal from republicans to white house, they could begin the process of raising the debt ceiling as early as tonight. probably will happen tomorrow. then they could open the government some time next week. that's the best case scenario
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right now and that's what the market's rallying on at the moment. >> pore sure. we're focused on reopening of the government. market continuing to see flows into stocks. take a look at investors cannot take this weekend off. what happens at the white house between presidents and republicans could determine what happens when that bell rings monday morning. if the deal goes sideways, so could this market. we'll be talking with republican buck mckeon, who was in the room with the president when the talks began in earnest. >> jpmorgan, they take a loss. ceo jamie dimon not at a loss for words. billions in litigation fees and legal problems swinging his bank to that loss for the quarter. he's now speaking out, suggesting the government is not being reasonable or fair. we'll have more on this still developing story coming up on today's "closing bell." >> let's check the stock market as we approach the final stretch for the week. dow jones industrial average shy
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of the high of the day with a gain of 8 5 -- 85 points. adding on to the big 30e 0-point plus rally yesterday. nasdaq on top of that fiery rally yesterday on nasdaq. 3788 last trade on the nasdaq. the s&p 500 looks like this with gains there as well. up 8.25 points. >> back to 1700. it was unthinkable two days ago but it looks like stocks will be higher for this week, bob pisani. since when do traders have that much faith in washington? >> as long as they're talking. put that dow back up. we heard comments today, senate republicans meeting with the white house, we hear words like encouraged, constructive conversation. as long as we hear words like, that market stays up. we get to monday night, we don't hear these kind of words or dead look, those kind of words, bad, market goes down. very simple here to understand the psychology. progress being made, good.
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markets are up today but a lot of sectors are kind of iffy. financials have had a tough day. of course, first earnings came in. wells fargo, jpmorgan. revenue on the light side, loan growth anemic overall. wells fargo has been down throughout the day. jpmorgan also to the downside. airlines not so. september traffic reports out. very strong. airlines are back in a big way. spirit airlines, of course, outperforming rather notably. retail stocks. let me show you refiners because i want to point out something. refiners have had a terrible week, terrible time, higher costs. all up today. they've been up in the last couple of days. some reports out there. they're exporting fuel at record levels. there's reports refiners are taking market share from european refiners. these stocks have been moving heavily. tesoro was $45 two days ago. retail stocks are not having a great day. gap came out with disappointing
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numbers. same store numbers after the close yesterday, weighing on overall. back to school season has not been particularly great. the talk is christmas is going to be eh to fair. bottom line, home builders, i want to put up also, had interesting day because jack at ses co-hannah upgrades them. there are some reports out there they'll have a good time in the next six months. a seasonably strong period for the home building stocks. back to you. >> thank you very much. it is all about washington. dow up 400 point in the last two trading sessions. >> let's talk about it in today's "closing bell" exchange with rich peterson, sam barnett, michele caruso cabrera, who is heading to the imf meetings and rick, who is not. >> >> earnings are never more
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important at this quarter given the absence of the report from the government. a week we saw estimates for third quarter, s&p capital, break below 3% now to 2.9%. we're seeing year over year declines in energy, consumer discretionary and in telecom. yesterday we had headlines in terms of the energy sector whereby chevron announced their third quarter numbers won't match second quarter return. proximal good signs in technology area from hp, where first half of the year, year over year declines, we've seen gains from first to third quarter. >> we're seeing this shutdown as rich said, earnings are now coming in a bit. we're seeing this shutdown impact, anticipation about the economy and certainly the earnings period. what are you expecting to hear
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from those central bank heads and foreign rz at the imf this weekend in washington? >> if there's progress this weekend in washington we think they'll express relief because we've heard from the imf they don't want to see anything that destabilizes the economy but we heard economists bringing down numbers already. second time in a week, in the last 24 hours, we heard from the chinese saying they're watching the situation. they're the biggest owners of u.s. debt. i had the opportunity to ask the head of the japanese central bank, what if the u.s. experiences a technical default? what are you as a central bank going to do? are you going to change your collateral rules, for example? are you going to accept u.s. treasuries? he said, first of all, i do not expect the u.s. to default. and even if it did, we wouldn't change our collateral rules at all. remember, the japanese are the second largest holders of u.s. debt, maria. >> we learned that this week. everybody was complaining about that. sam barnett, are you buying this rally, fading it? do you believe this rally is for
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real, as wall street watches washington very closely? >> i think we're just recovering from previous losses from earlier this week. as we've seen historically, government shutdowns don't have much effect on the market, especially when short lived. i think it's an area of concern but i think investors can just focus on the results after this week when we finally have resolution hopefully from washington. >> meaning you'll buy some more here or what are you doing? >> we're continuing to be optimistic. and we are -- we are always protecting in downside losses. in these unusual events, when they come up, we're continuing to buy a small amount of protection but our overall optimism is still there. >> rick santelli, what if we see a deal this weekend, government reopens, how are you expecting the government to react? >> i think given the way the market has reacted the last couple of days, i expect we would see a jump in equity markets only to come back a bit.
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i think they've pretty much priced it in. as a matter of fact, i think if it's a short-term deal, they may give some back. if you look at interest rate market, it continues to be the adult in the room when everybody's pulling their hair or looking at probabilities that are much larger, getting hit by meter with results. look at driving forces, right after 11:00 yields popped up and flirted with his at 270 but stock market shifted before 11:00. if you look at one week or three-week chart you can see we've moved out of the range a couple of basis points. the treasury market is probably going to be pricing more of an issue about the economy and all the fed taper, nontaper issues that have been swept under the rug but not really impacted the structure of pricing.
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last but certainly not least, the dollar index got a bit of a bounce and closed a bit up on the week. i attribute that to the upward stock and upward rate move. >> michelle, our market's not the only one that's been responding. european and asian markets have also benefitted as our talks continue in washington. >> absolutely. we've seen rallies there across europe as well. they also got a boost earlier when it looked like italy was finally going to calm down. the whole world is trading in lock and step, asia in particular. i would highlight as well, rick was saying, when it comes to long-term rates, if anything, they're going up whenever it looks like we're going to have a deal because we've seen money shifting from bonds into stocks. >> thanks, everybody. appreciate it. >> following this market up 80 points right now, this market may be on the rise but gold and oil having a tough day right now. sharon epperson at the nymex with that angle. >> when you look at gold, its down about 30 bucks. we've seen a significant selloff that really occurred this
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morning when we saw a dramatic sell, perhaps one large seller that entered the market. and really forced a lot of other selling that occurred throughout the day. traders are looking at what is happening in washington, watching every headline. as it looks like we're getting closer to a deal, that safe haven trade seems to be evaporating a bit. you add to that we had a trading halt here issued by the cme group issued around 8:40 this morning, and that's when we saw significant drops in prices. oil prices also falling today, due in part with what's happening in washington and what is the impact on energy demand here in the u.s. and also globally looking at international agency saying what supply will look like in 2014. they raised their supply forecast. looking at supply growth coming out of non-opec countries, we haven't seen since the 1970s. something else likely to pressure oil prices. not just in this session but for some time to come.
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>> i have loved going past my gas station the last month. >> it's great, right? if you lived in missouri, you'd be paying three bucks. maybe we should go to st. louis. >> good for them. let's all go to st. louis this weekend. >> all right. >> thanks, sharon. we're coming off the highs here. the dow was up 100 point a couple times today at its peak. coming off those highs, a gain of about 80 point as we head toward the close. >> taking a look at the banking sector. big earnings out today. how is the country's largest bank preparing for a default? tim sloan with us, cfo of wells fargo. >> the saddest government shutdown fought toe. can congress right above and get a deal done so this little boy can visit the national zoo in let the kid in, for pete's sake. buck mckeon will join us in a few minutes. >> and facebook ceo mark zuckerberg buying four homes next to his own for what one realtor called an absurdly high
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amount. he's not planning on building a new house. our wealth reporter robert frank with details coming up later on "closing bell." ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ how lincoln financial can help you take charge of your future. ido more with less with buless energy. hp is helping ups do just that. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations,
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welcome back. a big rally for two stocks today. dominic chu breaking them down. >> solar city, chairman is tesla ceo elon musk. the company announced it would expand solar energy installations next year. energy leading the s&p 500 after environmental protections agency proposed lowering the amount of required ethanol to be blended with u.s. gasolines. refiners are up big today. men's wearhouse moving higher. joseph a. bank said he'll continue to look for a friendly takeover with a sweatened bid. finances, jpmorgan reporting first ever quarterly loss under ceo jd yd because of a $9 billion legal expense. without those costs, the bank managed to post estimates that beat street estimates. wells fargo reporting a 13% rise
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in third quarter profits but mortgage banking income fell sharply as the refinancing boom from mortgages began to fade, maria. back over to you. >> thank you so much, dom. we'll keep following wells fargo, as you said, beating expectation but mortgage application revenue was down. stock lower earlier. down two-third of 1%. >> we welcome back wells fargo cfo tim sloan to talk about that and much more. all eyes have been on washington, hopes for a deal, no sure thing as we know. we've already seen fidelity and jpmorgan take steps to protect their firms from any debt ceiling threat. what about wells fargo, your boss was saying during a conference call your associates to help customers however they can during this period. what does that mean? what are you doing to help your customers here? >> first, we to want make sure
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we have adequate liquidity which we do. we have adequate capital. we want open communication with our customers. but we worry less about how it will -- any sort of shutdown or any sort of default will affect wells fargo. we're much more focused on our customers and we want to be there for them. >> fidelity sold all of their short-term t-bills. they wanted to be in cash just in case. have you done anything like that in preparation? >> no. we don't hold a significant amount of treasuries. we're not a primary treasury dealer. but we have been able to make sure we've got adequate liquidity at the bank, adequate liquidity at broker/dealers. we rolled some repos, extended some, but no mass sale of any u.s. treasurietreasuries. >> let's talk about the mortgage market and what you saw in the quarter, tim. in term of the slowdown we're hearing about in the mortgage market, how would you characterize business today? i know the quality is there, right?
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>> oh, the mortgage business is great. we originated $80 billion of mortgages in the third quarter. it's a terrific business for us. the important thing is it's not the only business at wells fargo. when you look at our earnings this quarter, again, our 15th consecutive quarter of earnings growth and tenth consecutive quarter of record, it was broad based. >> so you have -- have you seen any impact in the backup in rates, even if it's just fractional? >> oh, sure. if you look at our originations -- mortgage original nati originations they were down, so we were down in the quarter. our expectation at the current interest rate level is that our mortgage origination will be down more in the fourth quarter. that's nothing new for us. we faced cyclicality in the mortgage market all the time. you look at the rest of the business. broad-based loan growth,
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broad-based deposit growth, reduction in expenses, significant improvement in credit, a reserve release so that our capital levels were up, and we bought more of our shares in the last quarter. so, it was a very good quarter. >> with the backup in rates, your refi market, everybody's refi markets drying up. heats down sharply, isn't it? >> oh, it is. the mix of mortgage origination in the third quarter was about 60%, purchase moen money mortgage, and about 40% refi. that's a flip from what we saw in the first and second quarter of this year. again, that's not a surprise to us as rates go up, the amount of our customers that want to refinance their mortgage goes down. that's just a natural part of the cycle. >> so how do you characterize -- you can imagine our interest in the housing market through your eyes since you're the largest mortgage originator out there. how do you characterize the housing market right now? >> the overall housing market is strong. when you look at the
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year-over-year increases, they're up at a low double digit rate. that won't continue forever. that's a great sign. when you look at home affordability in terms of how much of a household's income is needed to buy the median house price, that's at one of the lowest levels in history. so afford anlt, home price increases, rates, even with the recent backup we've seen, are still very low. overall the housing market continues to perform. that's a real benefit, not only for our customers but also for wells fargo. when you look at the fact that our loan losses are down to 48 basis points, a big reason for that is the improvement in the housing industry. >> so, what kind of end of the year are you expecting, tim? >> a good end of year. our goal is to continue to grow our business, to be there for our customers, to continue to grow earnings. i can't proums that.
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but we're very excited about the prospects to continue to grow. you saw that in our results this quarter. the loan growth in particular was very broad based. in our commercial business, our wholesale business, our real estate business, all of our consumer business, wealth retirement brokerage, that was very exciting. >> there was talk among analysts about the $900 million release in reserves. what was behind that and is that going to continue the next couple quarters? >> i don't know what our reserve release will be in the next couple of quarter. we do believe we'll continue to release our excess reserves. that's because the underlying credit quality of the company continues to improve. >> janet yellen appointed -- or nominated to be the next fed chair. the feeling is that she'll be the type of fed chair that will keep quantitative easing longer than larry summers might have. does that work for you, especially when it keeps those rates as low as they are right now? that doesn't help the banking industry overall.
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>> it certainly creates challenges. low rates have been a headwind we've been facing for the last 15 quarters and we've had 15 quarters of earning growth. i mean, there's no -- there's always going to be headwinds in our business. always, no matter what they are. we're hopeful at some point the tapering begins. that said, we look forward to working with vice chair yellen. we hope she's approved as new chairman of the fed. we have a very high regard for her. we think she's an excellent choice. >> we'll leave it there. nice to have you on the program. thanks so much. >> thank you. >> we'll see you soon. tim wells, fco at wells. up 72 points on dow jones industrial average, on top of 300-plus point rally yesterday. >> no pull backs yesterday. >> senate republicans finishing a meeting at the white house minutes ago. we'll find out what happened and speak with a house republican who met with the president last night. house armed services committee
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chair buck mckeon joins us. what really went on in the room and give us the color in just a moment. >> jpmorgan posted first quarterly loss under jd yd after paying billions in legal fee, dimon says enough is enough. vo: two years of grad school. 20 years with the company. thousands of presentations. and one hard earned partnership. it took a lot of work to get this far. so now i'm supposed to take a back seat when it comes to my investments? there's zero chance of that happening. avo: when you work with a schwab financial consultant, you'll get the guidance you need with the control you want. talk to us today. even when we cross our t's and dot our i's, we still run into problems. that's why liberty mutual insurance offers accident forgiveness if you qualify,
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welcome back. stocks still rallying because so far at least the deal to avert
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the debt ceiling debacle is still alive. they're still talking. hampton pearson joins us from washington. what's going on there, hampton? >> today senate republicans were the last key congressional group to meet at the white house with president obama. after those talks, negotiations, whatever you want to call them, were getting some indication of perhaps a little daylight between house republicans and senate cleelgs. snore collins outlined a proposal for longer debt ceiling as well as money to fund the government. >> i did have the opportunity to present the plan that many of us have been working on that is a multi-element plan that would allow us to reopen government, have a short-term extension to say january of next year of the debt limit. >> but it appears house gop might move over the weekend to
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take action to raise the debt limit for about six weeks until around november 22nd. wait until early next week to deal with the issue of funning the government and perhaps mid-december, but they do want some confessions in return. now, the white house remains noncommittal. waiting to hear from jay carney. ma joerd leader harry reids he's poised for a deal to extend the debt ceiling until january of next year. but clearly the pressure is on republicans, including the last two polls saying bottom line, the republican brand is at an all-time low because of the government shutdown and what appears to be a failed strategy thus far. maria? >> thanks so much. of course this all started with a late day meeting at the white house with the president and a few key republican house members. >>. >> our guest coming up was one of those members at the white
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house, buck mckeon. thank you for joining us. >> thank you. >> we heard words like productive and cordial coming out of that meeting. give us your view of what happened in that meeting last night and are discussing continuing today? how do you characterize what's going on right now? >> you know, we've been asking the president to talk to us for weeks now, or months, so i think that it was a good start last night. i agree with both of those words. i think it was a good meeting. we came right back to the speaker's office. we got the staff writing up some proposals. they worked through the night. worked with the president's staff. we're waiting now to hear if they've accepted it or exactly where we are. when you get to this point in negotiations, sometimes you're looking at a word or a sentence or a date.
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so all of these things need to be clarified. i know we've been told we'll have a conference of our members meeting in the morning at 9:00. this momentum we have building now will hopefully get this thing worked out over the weekend. get the government back to work and move forward on our work. >> what would you like to see the deal look like? >> you know, it depends. if it's going to be a month or six weeks, it needs to be some parameters. if it's going to be longer, it has to be a different parameter. i don't know how this is going to come together -- >> what would you like a short-term parameter to look like? >> short term i would just like the president's assurance that he'll be involved in negotiations so that we can work to get our -- get back to regular order. we need to get back to the way
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it used to function. senate hasn't passed a regular budget. most members in the house don't even know what regular order looks like. we need to get back to that where we pass a budget, pass appropriation bills, get government funded so it starts on october 1st so we can bring certainty to the military leaders so that they can plan ahead and know what money they'll have available to them. >> is it a reasonable expectation, sir, we'll see votes tomorrow in the house that would raise the debt ceiling and maybe begin the process of reopening the government? is it that? is it a reasonable expectation to see that beginning over the weekend, do you think? >> when i left the meeting last night, i was feeling pretty good about it. then i heard senator reid was kind of popoo'ing our proposal without having even seen it. so i think we have to wait and see where the president comes down on this.
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he was very amenable to working with us last night. he wants to work with us. understands the house is a very important part of this. so i want to be optimistic. i'm hopeful we can get this resolved in the next day or two and get the government open next week. >> did the president say he would begin the discussion on the debt ceiling, or did he stick to we're not going to have any discussion until the government is opened? >> no, no. we had pretty good discussion last night. i don't want to get into any of it because, you know, at this point negotiates get pretty tricky. our promise was we're not going to get into this, until we actually get an agreement worked out. >> are you frustrated by the polls that have been released over the last 24 hours that seem to blame republicans for the mess in washington right now? >> you know, it's interesting.
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we have some control over one-third of this mechanism here. we've sent numerous proposals to the senate, they reject them out of hand and they get a free pass. i don't know how that works. they don't even vote on some of these things. we get all the plame. >> was it a mistake to tie obama care to the negotiations? that seems to be one of the sticking points for the american public. >> i think the first question we had that we defund obama care was an overreach. i think the next to last one we asked for was a year's delay. i think all the probd we're having with the roll-out, a year's delay was very reasonable given that the president had already given it to big business. he had already given it to a lot of different groups and unions. i think that was a reasonable
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question and they probably at some point wish they had done that because once the focus gets off this fight that we're having now and reporters and media start turning to the problems they're having with the rollout and the people not able to sign onto obama, aren't able to buy a policy, when they start seeing all those problems, they'll probably wish they had gone to a year's delay. >> we'll see. >> mr. chairman, thank you for your time. appreciate it. >> thank you for having me dmr a new cnbc/wall street journal polls find 60% of americans want every member of congress fired. could that disgust with congress spark the elusive grand bargain? that's just ahead. tune in tonight at 6 p.m. for a special report on the debt threat and how it could impact your money. that's tonight beginning at 6 p.m. eastern on cnbc. meantime, the dow still
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coming -- well, no. we're coming back again. a gain of 90 points with 30 minute left in the trading session. a couple times today we were up 100. it continues to rally for the last couple of days xlo a triple play on the trading floor d.c.-generated rally being felt across the country. we take the pulse of where the market could go from here and what traders are looking for. before global opportunities were part of their investment strategy... before they funded scholarships to the schools that gave them scholarships... before they planned for their parents' future needs and their son's future... they chose a partner to help manage their wealth, one whose insights, solutions and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust. the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all
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what a woeek it's been for the markets. let's go down to the trading floor. >> here at the new york stock exchange, our friend warren myers watching the equities market. he's an analyst. my next watching gold and oil, alan harry, and at cme watching currency and debt markets, brian battle from performance trust capital partners. we've had a heck of a rally this week and still no deal in washington. are you getting nervous that maybe the markets are getting ahead of themselves? >> i don't think so. we sold off fairly decently prior to any real discussions starting to take place. and i think if you looked at the way the market acted even prior to this, the selloff never really took hold because most
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traders believe -- both sides would come to an agreement on the debt ceiling. the fact we had significant discussions take place is an indication they were probably right and that's why we've seen this rally. >> what about the nymex, what can you tell us in terms of commodities? oil elevated but certainly off the highs. >> gold getting killed. >> i see crude oil taking a rally out of here. i think we do have something positive coming in the next week to two weeks. it hasn't come off as much as it should have. it should have been off n my opinion, another $5 to $10 in crude oil with all going on and it didn't do it. therong market, back up it goes. gold on the weak side, i think that's still heading down. >> how much lower? what is that, a four-year low now? >> it is. i see gold broadcasting ibreaki next three months. >> brian battle, you could argue the real sensitive markets to
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what was going on in washington were your markets there in chicago with the -- especially on the short end of the yield curve. what did you make of that? what was the message of that market, do you think? >> the bond markets have the wind at their backs. everything in 2013 sold off because if there was a default, it would be short term and get fixed. bond market's feeling good here, in the discussions, when everything looked like it was going to get fixed, the bond market didn't sell off. it's all bad for the economy. slowdown in washington is nonsense. we have a new fed chairman. we can't have quantitative easing in december. she takes the chair in march. and that takes us out to march. we're in the clear barring a complete and total breakdown in washington. >> breakdown in washington but that doesn't look to be happening, right? do you think this market continues where we are today going into next week? >> the bond market is great.
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we went to a three on the ten-year. we're at 2.60. we're comfortably priced right here. the 17th isn't the drop dead date. that's the date of borrowing. the week of the 21 st when we run out of money. we have more run way than people think. two weeks to go. >> when negative poll results came out last night, suddenly they were all talking again. amazing. thanks. have a good weekend. >> in the final stretch, about 20 minutes before the closing bell sounds for the day. a market up by 73 points. >> dow and s&p on track to snap a two-week losing streak but the nasdaq looks like it will close in the red for this week. it had some incredible daily moves but up and down, of course. courtney reagan gets behind what's happening with technology stocks. >> also facebook has been accused of invading users' privacy. now mark zuckerberg is going to extremes to protect his own privacy at his house and it is costing him millions and millions. talk about irony. that story next on "closing bell." same things you do.
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(announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. welcome back. a wild week for stocks. the wildest bunch has been the nasdaq sack. >> courtney reagan is there
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trying to get it under control for us. how are you doing? >> pretty well. i feel like today has gone much better than other days this week. we did start the week in the red at the nasdaq for composite. steady build throughout the day. as long as politicians are talking it seems like risk-on down here at the nasdaq. but it took some pain to get us here. if we take a look at what happened this week, on wednesday the nasdaq composite down more than 4%. at one point during the day we had recovered substantially since then. but still we are on pace to close the week down about 0.6% which would break this five-week winning streak the nasdaq composite has had. we hit the high on october 2nd. we're within about 34 points of getting there again. it's not going to happen today. if we take a look at some components, take a look at sears. it's a retailer but trades down at the nasdaq. it has a small float but down 14%, worst weekly loss of 2012 when it fell 24%. micron, a name getting a lot of
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attention, down 9% today. it's the third best performing stock, though, in the nasdaq 100 so far this year. today it's the worst performer. after those earnings that were disappointing on the bottom line. it is on track here to halt five weeks of consecutive gains. it's been quite a high flyer here. on the flipside, intuitive surgical shares on pace for their best week since january 25th. and biotechs getting a lot of attention for hitting multi-month lows earlier on. we again began to see them climb back out of the red at the last couple of days, but it's not enough to finish in the green for names like vertex, biogen. back down to you. >> thank you, courtney. >> we got this new market data software on our computer today. >> we love it. >> we're feeling pretty good about it. what's the best performing international market this week? >> argentina. >> very good. >> how much is it up in the last
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year? 116%. >> wow. how about mexico, my favorite? >> mexico is down this week. down 1.6%. >> what about year to date, bill? >> down 1.9%. >> year to date? wow. okay, okay. >> go ahead, ask us anything. we've got it now. >> you know what i want to do next? i want to get some earnings expectations and pe ratios. >> we can do that. >> market cap and percent changes. >> we can do that. >> six months, a year. we are swimming in data. >> the dow's up 72 points. we can tell you that with 14 minutes left. >> are we setting ours up for a major selloff if things fall apart this weekend? we'll look at scenarios next. [ female announcer ] it's time for the annual shareholders meeting.
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welcome back. final stretch, dow industrial up 65. we're off the highs. still looking at a rock 'n' roll market. what is to come next week? >> let's talk about that with our guest, david darst and robert luna. welcome. you both got the red tie memo. >> matching dressers here. >> but no red in the market
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today. >> happy columbus day to everyone. >> this weekend. gala, parade on fifth avenue monday. >> is the market getting ahead of himself here? >> it does not seem it's getting ahead of itself. no recession, no fed tightening, no small caps underperforming or banks taking gas. no bond yelled spread and valuations are just a touch to the expensive side. they're not egregious -- >> this is appropriate right now? >> this is okay right now. we expect it to be more modest in gains going forward. >> what's your specialty here? how do you want to approach this market and what are you looking at that perhaps -- >> i agree with david somewhat. we have a little different approach. we think the markets have gotten ahead of themselves so this pull back we have we think is appropriate. we were expecting a little more, to be quite honest with you. investors have become a little complacent in the market. the vix sitting at 12, 13 for a while. to see that spike back up to 20
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put a little scare in the market so i think people went to cash. market strategy has been playing out here. people who sold on wednesday missed a 2.5% move up. . we like foreign markets. >> which one? >> emerges, frontier markets like vietnam. several ways for investors to play that. while the growth has slowed down you're still talking about 5% to 6% gdp versus what we have here. much cheaper valuations. >> are you aware argentina is up 116% in the last year, we just found out? >> we wouldn't play with one country like argentina. we take a broader approach. >> i don't think brick and emerging markets is appropriate anymore. it seems they're so different. >> they're very heterogeneous. >> that being said, i don't want to sound like a broken record, but you want to buy japan. >> you've been buying japan, you've been right. >> that thing is up 39% and
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hedge basis up 30% and buy the japan index. >> as christine lagarde said ahead of the imf meetings, international economies are not just connected, they're hyperconnected now. we're so attuned to each other's nuances. >> markets are moving up as they're moving forward together right now. europe, china, japan, u.s. they're helping one another. >> are you saying you'd take money off the table, though, as this happens? >> we agree. markets are moving in tandem so why is there this big discrepancy between valuations in europe and emerging and here? these are global koerngss so you shouldn't have that big disconnect in valuations. better yields, better volume. we think investors should be moving more money offshore. >> we've been putting money on the table. >> there's money on the table. >> is that one of the new $100 bills? >> this week, maria, slummer j reports, ibm reports, coke and pepsi reports, johnson & johnson. these are bellwethers.
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listen to the ceos, they'll tell you about the fourth quarter and into next year. >> david darst has the money. just looking for the table to put it on. we'll come back with the ebtd of the "closing bell." >> some people are saying throw the bums out. the message from america in a new nbc/wall street journal poll. 60% want anybody that's in voted out. maybe this could spark them for a grand bargain. the market would love it. how realistic is it? we'll have an update on the latest negotiations out of washington. when i first felt the diabetic nerve pain, of course i had no idea what it was. i felt like my feet were going to sleep. it progressed from there to burning like i was walking on hot coals... to like 1,000 bees that were just stinging my feet. i have a great relationship with my doctor... he found lyrica for me.
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get live squawks right in your trading platform with think or swim from td ameritrade. welcome back. where were we now? oh, the things you miss during commercial breaks. markets starting to come back. why don't we show you what the dow -- >> why don't you show us. a stutter step this morning. off to the races, up a 100 points a couple times today. still looking for direction as we head to the close with a gain of 86 points. since october 1st the beginning of the government shutdown, we were down sharply. this was earlier this week. and then hope sprung eternal and the market has come back. and through it all, since the beginning of october when the shutdown began with the comeback, we're up 0.5% on the dow jones industrial. that's all. let me show you quickly the vix.
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this was the fear indicator. at the bottom for the market, it was hitting a peak above 20. we've come back. down almost 4%. just for you, maria, we learned the argentine market is up 83% year to date with our new data. >> japan, japan up almost 40%. >> yeah japan's doing very well. >> abe-nomics. >> it's friday. can you tell? peter costa, is this market getting ahead of himself right now? there's no deal in washington. >> no, it's not. i'll tell you why. it's convoluted reasoning i came up with. if we felt and investors felt this deal wasn't going to get done, the market would have been down a lot more early on, way before we went to the shutdown. we would have sold off already. right now i don't think investors believe there's not going to be a deal done within
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the time frame we're looking for. i also think now people are starting to refocus where they should be, on earning. the earnings, you're seeing companies come out with fairly significant -- you know, they've done better than were expected. i think we'll see that and see more of that. >> earnings have come in. talking about overall earnings growth of about 3 %, according to s&p 500. big week next week. i'm wondering if you want to sell into the earning story next week, given the fact that the estimates are coming in. >> it's one way of doing it. me, i'm looking longer term. short-term investor, absolutely, lighten up, take money off the table, wait for some other news, other buying opportunities. if you're looking at things longer term, six months to a year, don't have a problem buying when i feel the market will go up another 10%, and i do. there's another opportunity. maybe there will be a buying opportunity. but i don't think you'll get many. >> up another 10% in your view. is that because of the earnings or because the tapering has been
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delayed because of janet yellen coming to the fed? >> i think it will have something to do with that. it's on the back burner but definitely that will happen the market definitely see new highs. she's in the same camp where we are now. >> and a few alternatives. got to buy this debt over the longer term. i have to be ready for the next hour. >> happy international women's day. >> thank you very much. thank you. >> there you are. >> he said, when is international men's day? i said, every day. sorry. >> they'll be ringing the closing bell. >> big week for the markets here. have we seen the bottom? we had another move down, third time this year where the correction was less than 10%. it was 6 % this time around. is this the bottom? >> no -- yes, as a matter of fact i was going to say no, but, yeah, it was the bottom you have small moves on the downside but when it retraces, it retraces
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more. if you have a buying opportunity, buy now because the next dip will be at a higher level. >> thanks. happy international women's day. the dow perking up at the close. second day in a row we're finishing at the high of the day. a gain of 108 points right now capping off a big up-week for the stock market as we keep an eye on washington. have a good weekend. second hour of the "closing bell" right now. it is 4:00 on wall veet. do you know where your money is? welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. stocks rallying into the close on optimism once again that lawmakers in washington are nearing a deal on the shutdown and debt ceiling. take a look at how we're finishing out this friday night. dow jones up 110 at 15,236. nasdaq strong on top of that big move yesterday. another 31 points higher on nasdaq. big momentum players back in


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